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Difference between Quoted Company and Unquoted Company

What is a Quoted Company?

A quoted company i.e. a publicly traded/held company is a company who list their securities in stock exchanges or otc markets to raise funds through the sale of securities in the primary or secondary market. This process generally starts with an initial public offering (IPO) and later may happen with further issue of shares.

What is an Unquoted Company?

An unquoted public limited company is a public company whose shares are not freely traded on the stock exchange(s) or in over-the-counter (otc) markets. Otherwise popularly also known as "unlisted public company".




Why can't every company be a Quoted company?

In order to list shares in stock exchanges, there are several requirements to be fulfilled by a company viz. profit in preceding years, net worth, tangible assets, issue size, min. bid price, number of shareholders, number of shares, etc.

Not all companies satisfy all these requirements as prescribed under the securities laws of their countries and hence, they do not qualify to be listed in stock exchanges and therefore, they remain as the unquoted public limited companies.

Examples

All the public limited companies which are not quoted companies are called unquoted public limited companies.

Some of the popular quoted companies are Amazon, Microsoft, Fiserv, Adobe, Intel, Apple, Comcast, Starbucks, PayPal, etc.

In the NASDAQ website, you can find a list of some unquoted public limited companies who are planning to issue an IPO. Hence, after the success of their IPOs, these companies will become quoted companies.





Quoted company becomes Unquoted company

A quoted company may voluntarily apply to delist its securities from stock exchanges and become an unquoted company. The stock trading will be stopped.

Otherwise if they violate any listing regulations after listing of their securities in the stock exchanges, then they may be banned from the stock exchanges from trading their securities. Thereby, their status will change to "unquoted company".



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